Public-Private Roundtables at the Fourth Clean Energy Ministerial

ii
Public–Private Roundtables at the Fourth Clean Energy Ministerial
“There is need for inter-country consultation and
discussion in these areas to promote information
exchange and to identify possible areas of
collaboration, and also to learn from each other’s
experience in addressing common problems.
The Clean Energy Ministerial has made a major
contribution to such discussions.”
Dr. Manmohan Singh, Prime Minister of India
“Through the Clean Energy Ministerial, we are
accelerating the transition to clean energy technology
around the world.While this is a young process, we
are already achieving results—from saving consumers
and businesses money with energy-efficient appliances
to providing millions with access to clean, affordable
energy supply.”
Steven Chu, Former U.S. Secretary of Energy
The Fourth Clean Energy Ministerial |
17–18 April 2013, New Delhi, India
©
Clean Energy Ministerial, 2013
This publication may be reproduced in whole or in part
and in any form for educational or nonprofit purposes
without special permission from the copyright holder,
provided acknowledgment of the source is made.
No use of this publication may be made for resale or
for any other commercial purpose whatsoever without
express written consent from the Clean Energy Ministerial
Secretariat.
The views expressed are those of certain participants in
the discussion and do not necessarily reflect the views of
all participants or of the Clean Energy Ministerial.
Clean Energy Ministerial Secretariat
U.S. Department of Energy
1000 Independence Avenue, SW
Washington, DC 20585
www.cleanenergyministerial.org
Images are copyright iStockphoto; sourced from Wikimedia, the U.S.
Department of Energy, NASA, or the National Renewable Energy
Laboratory; or provided by the Government of India.

iii
Foreword......................................................................vi
Introduction..................................................................1
Roundtable 1
Solar PV: Reducing Soft Costs........................................2
Roundtable 2
Clean Vehicle Adoption.................................................6
Roundtable 3
Power Systems in Emerging Economies........................10
Roundtable 4
Renewables Policy and Finance....................................14
Roundtable 5
Energy Management Systems......................................18
Roundtable 6
Mini-Grid Development...............................................22
Annex I. References.....................................................26
Annex II. Clean Energy Ministerial Initiatives................27
Annex III. Acknowledgments........................................28
Contents“[The] CEM has now matured into a process with
actionable agendas and programs and is working
to achieve them.The Indian participation has
extended to new initiatives, and we look forward to
greater integration of the developing world in the
clean energy strategy for the world.”
Montek Singh Ahluwalia,
Deputy Chairman of
India Planning Commission

iv
Anil K. Jain, IAS
Adviser, Energy
Planning Commission
Government of India
Graham Pugh
Director, Office of International
Climate Change Policy and Technology
United States Department of Energy
Foreword
“We need a cleaner, low carbon [energy] model that
benefits both people and planet. And we can only
achieve that through the leadership and collaboration
of governments and the private sector.” Those were the
words of United Nations Secretary-General Ban Ki-moon
as he addressed energy ministers and other high-level
government representatives gathered for the fourth Clean
Energy Ministerial (CEM4) in Delhi. Since it was formed in
2009, the Clean Energy Ministerial (CEM) has embraced
the view that the transition to a global clean energy
economy will require the private sector, governments,
and other stakeholders to act together, bringing their
respective abilities, strengths, and resources to the table.
In addition to engaging the private sector and expert
community through a number of its initiatives, the CEM
convenes roundtables on select topics at its annual
ministerial meetings. These roundtables provide an
opportunity for participating ministers and high-level officials to engage in an open discussion with the private sector,
nongovernmental organizations, and other experts on clean energy issues identified as being particularly topical
and salient. The goal of the roundtables is to literally bring those parties to the table to share their views, increase
understanding, and promote collaboration where helpful.
This year, six roundtables addressed reducing soft costs for solar PV, enhancing energy management systems,
financing renewables, increasing the deployment of clean vehicles, exploring viable business models for mini-grids,
and advancing power markets in emerging economies. Participants included government energy ministers, CEOs of
multinational companies, small business entrepreneurs, experts from labs and academia, and executive directors of
civil society organizations. The roundtables focused on generating concrete and actionable recommendations and
informed policy makers and private-sector participants on key issues.
We offer our sincere thanks to all attendees for their active participation in the roundtables and to the moderators
who very skillfully facilitated the discussions to achieve the desired outcomes.

1
Introduction
The Clean Energy Ministerial (CEM) is a high-level global
forum to share best practices and promote policies
and programs that advance clean energy technologies
and accelerate the transition to a global clean energy
economy. The CEM works to increase energy efficiency,
expand clean energy supply, and enhance clean energy
access worldwide. To achieve these goals, the CEM
pursues a three-part strategy that includes high-level
policy dialogue, technical cooperation, and engagement
with the private sector and other stakeholders.
Each year, energy ministers and other high-level delegates
from the 23 participating CEM governments come together to discuss clean energy, review clean energy progress, and
identify tangible next steps to accelerate the clean energy transition. The U.S. Department of Energy, which played
a crucial role in launching the CEM, hosted the first annual meeting of energy ministers in Washington, DC, in June
2010. The United Arab Emirates hosted the second Clean Energy Ministerial in 2011, and the United Kingdom hosted
the third Clean Energy Ministerial in 2012. This year, India hosted the fourth Clean Energy Ministerial (CEM4) in New
Delhi.
High-impact, low-cost technical work takes place through the CEM’s 13 clean energy initiatives. The work facilitates
international coordination that amplifies each government’s clean energy deployment efforts. Although it is still a
relatively young process, the CEM is already yielding tangible results, such as new appliance efficiency policies, a
global renewable resource atlas, and hundreds of thousands of quality-assured off-grid appliances sold. A summary
of CEM accomplishments is available at Cleanenergyministerial.org/Accomplishments.
The CEM also recognizes the essential role of the private sector and seeks to leverage its expertise, influence, and
capital. As part of this work, the CEM convenes high-level public-private roundtables on select clean energy topics
during the annual ministerial meetings. These roundtables capture private-sector input and encourage public-private
dialogue and cooperation to advance clean energy.
At CEM4, six public-private roundtables addressed key clean energy topics:
1. Solar PV: Reducing Soft Costs
2. Clean Vehicle Adoption
3. Power Systems in Emerging Economies
4. Renewables Policy and Finance
5. Energy Management Systems
6. Mini-Grid Development
The roundtables brought together energy ministers, business leaders, and experts from nongovernmental
organizations and academia to identify the policies, technologies, investments, and capacity-building efforts that may
be needed to advance progress in each of the six topic areas. Participants received extensive background information
on each topic in preparation for the roundtable discussions. This information is available on the CEM website at
Cleanenergyministerial.org/CEM4Roundtables.
Many of the discussions included recommendations for utilizing existing CEM initiatives to drive greater progress. The
following sections provide highlights from each of those discussions.

2
Solar PV: Reducing Soft
Costs1
Introduction
The objective of this roundtable was to identify effective
approaches to drive down the non-hardware costs, or
“soft costs,” of solar photovoltaic (PV) technology and
thereby accelerate deployment. Discussion focused on
public- and private-sector roles, some of the new and
innovative business models and tools that are being
used in the sector, and the potential for international
collaboration.
Moderator
• Martin Hiller, Director General,
Renewable Energy and Energy
Efficiency Partnership
Government Representatives
• Germany: Dr. Karsten Sach,
Deputy Director-General for
International Cooperation,
Federal Ministry for the
Environment
• India: Ratan Watal, Secretary,
Ministry of New and Renewable
Energy
• Italy: Gilberto Dialuce, Director
General for Energy Supply
and Infrastructure, Ministry for
Economic Development
• Mexico: Leonardo Beltran,
Undersecretary for Energy
Planning and Transition,
Secretariat of Energy
• United Kingdom: Chris Barton,
Director of International and
Domestic Energy Security,
Department of Energy and
Climate Change
Private Sector and Civil
Society Representatives
• Galen Barbose, Principal
Scientific Engineering Associate,
Lawrence Berkeley National
Laboratory
• Ardeshir Contractor, Managing
Director and CEO, Kiran Energy
• Giovanni Fili, CEO, Exeger
Sweden (formerly known as
Nlab Solar)
• Stefano Fissolo, Deputy CEO
and Board Member, Solesa Srl
• Arunabha Ghosh, CEO, Council
on Energy, Environment and
Water
• Ajay Goel, CEO, Tata Solar
Power
• Vikram Kandula, Business
Development Manager, Ravano
Green Power
• Ravi Khanna, CEO, Aditya Birla
Group
• P.K. Mishra, Chairman,
Gujarat Electricity Regulatory
Commission
• Teresa Ribera, CEO, ISOFOTON
• Milesh Ruparel, Director,
Quanta TowerGen Private Ltd
• Dr. Satyendra Kumar, CTO,
Lanco Solar
• Mohammed Reza Shaybani,
Chairman, British Photovoltaic
Association
• Udayadittya Shome, Vice
President, Juwi India Renewable
Energies Pvt Ltd.
• Maria van der Hoeven,
Executive Director, International
Energy Agency
• Lakshmi Venkatachalam, VP,
Private Sector and Cofinancing
Operations, Asian Development
Bank
Operating Agent
• International Renewable Energy
Agency

Solar PV Hard Costs versus Soft Costs
Hard costs (i.e., hardware costs) include modules,
mounting hardware, wiring, inverters, and monitoring
equipment. Soft (i.e., non-hardware) costs include
financing, customer acquisition, design and
engineering, installation, permitting, and inspection.
3
Overview and Background
Large-scale public and private investments in the
research, development, and demonstration of solar
PV technology have sharply reduced the costs of PV
system hardware over the last few decades. According to
Bloomberg New Energy Finance, solar PV module prices
have fallen 80% since 2008 and 20% in 2012 alone.
The non-hardware costs of installation, or “soft costs,”
have not seen the same dramatic declines, and they now
account for a substantial portion of the total installed
cost. With the decline in hardware costs expected to
slow over the next few years, addressing soft costs will
be essential to ensure continued reductions in the total
installed cost and associated acceleration in deployment
of solar PV systems.
For the purposes of this roundtable, four main categories
of soft costs were identified for solar PV systems:
ƒƒ Overhead and financing: Includes the capital
costs of loans, insurance, and the expense of
preparing legal agreements such as purchased power
agreements and requests for proposals.
ƒƒ Customer acquisition: Includes the preparation of
information to persuade businesses and homeowners
of the value of installing PV systems, marketing and
advertising to disseminate such information, sales
calls and site visits, and contract signature and
payment.
ƒƒ Installation labor: Includes the installation of PV
systems and connecting them to the grid, plus follow-
up operation and maintenance once the systems are
in service.
ƒƒ Permitting: Includes the time for permits, inspection,
and interconnections; labor and other expenses
to apply for permits; and utility interconnection
expenses.
Soft costs can account for 40%–50% of the total installed
cost of a system and can typically add $1–$3 to the cost
per watt of capacity. There are, however, significant
variations in soft costs among different countries.
For example, soft costs in the United States are up to
five times higher than those in Germany. As Figure 1
illustrates, a number of factors account for this difference.
Countries that have experienced more balanced
reductions in both hardware and soft costs have some
commonalities. The markets are competitive, there is a
skilled labor force, there is generally good information
available, and there are well-designed policies with
incentives that are aligned with market needs.
Identified Barriers
There are several significant barriers to reducing PV soft
costs:
Financing: It is difficult to access affordable financing
with reasonable effort. Banks that may not be familiar
with PV technology may charge higher-than-usual rates
for system loans. The loan application process may also
be complex, contributing to overhead costs for installing
PV systems.
Market structure and size: Business markets for PV
in residential and commercial buildings are fragmented
and limited in scale, making it more difficult to provide

4
training and utilize skilled PV installers efficiently.
This contributes to a higher installation cost per watt
of capacity and presents difficulties in reducing that
cost. The small, fragmented market also means that a
relatively large effort, per unit of capacity, is required
to obtain necessary permits. A wide variety of zoning,
construction, and safety permits are often required by
different federal, provincial, and local jurisdictions,
raising the labor costs associated with the permitting
process.
Standardization: Today’s PV panels are somewhat
complex—in part due to the lack of a simple and
standardized design—which also leads to higher
installation labor costs.
Public awareness: Public awareness of PV options and
benefits is also limited in many locations. In smaller
markets, it may not be as cost-effective to provide
information and advertise, which contributes to a
relatively high cost of customer acquisition.
Potential Solutions
Roundtable participants suggested several steps that
public and private stakeholders could take to address the
identified barriers and reduce PV soft costs:
Financing: Innovative financing schemes such as rooftop
leasing could lower costs and provide other benefits.
Under rooftop leasing, a company invests in solar PV
equipment and installs the equipment on leased roof
space. The company sells the power generated by the
panels to the building owner at a competitive rate.
Any excess power can be sold through net metering
programs. This approach could be endorsed by regulators
and managed on a large scale by solar PV management
firms. Such schemes could reduce customer acquisition
costs, spread permitting costs over a larger base, and
spur development of a specialized and more efficient
labor force that reduces installation labor costs.
Market structure and size: National, provincial,
and municipal governments could implement various
regulations to build market scale and reduce PV soft
costs, including requiring net metering of generated
electricity, allowing payment of feed-in tariffs to building
owners, and requiring low net energy use in new
buildings.
Standardization: Photovoltaic system manufacturers
could contribute to the reduction of permitting and
labor costs by sharing information and creating more
standardized, easy-to-install roof panels.
Public awareness: Public education programs, with
inputs from manufacturers, could reduce customer
acquisition costs by better informing building owners
about the potential payback from PV investments.
City-level promotion: Municipalities could promote the
construction of, or retrofit to, low-net-energy buildings.
International collaboration: There are opportunities
for international collaboration on many of these possible
solutions. For example, Clean Energy Ministerial
participating governments and PV manufacturers might
cooperate to reduce installation labor costs by developing
innovative training schemes and by standardizing PV
panels that are easier to install. In addition, international
standards organizations and PV manufacturers could
collaborate on educational efforts to promote the costs
and benefits of high-quality PV systems for building
owners.
Figure 1. Comparison of soft costs for residential photovoltaic (PV) systems in Germany and the U.S. Source: Seel, Barbose, and Wiser 2013

5
“The roundtable provided a fascinating range of different angles on the problem of soft costs of solar PV.
Pulling all of those distinct views together at one table was immensely informative and valuable.”
Martin Hiller, Director General,
Renewable Energy and Energy Efficiency Partnership
Key Recommendations
The roundtable participants made several key
recommendations for reducing solar PV soft costs:
ƒƒ Build economies of scale and facilitate learning
curves that reduce PV soft costs.
ƒƒ Foster the right financing ecosystem to drive down
the costs of capital for PV systems, including providing
information to financial institutions about the real
risks, costs, and benefits.
ƒƒ Establish a consistent and predictable policy
framework to build market confidence.
ƒƒ Further analyze and identify additional areas for
cutting soft costs and share the data.
ƒƒ Streamline administrative procedures, with a “one-
stop-shop” approach to permits.
ƒƒ Standardize technology testing and certification and
set reliable minimum standards.
ƒƒ Build capacity for proper installation of PV systems in
the construction trades.
ƒƒ Bundle projects and cooperate on research and
development to mitigate risks and share the costs of
learning.

6
CleanVehicle Adoption
2
Moderator
• John Podesta, Chair, Center for
American Progress
• China: Wan Gang, Minister,
Ministry of Science and
Technology
• Finland: Marja Rislakki, State
Secretary of Economic Affairs,
Ministry of Employment and
Economy
• Germany: Wolfdieter
Böhler, Head of Division for
International Energy Policy,
Federal Ministry of Economies
and Technology
• India: Praful Patel, Minister,
Ministry of Heavy Industries and
Public Enterprises
• Ireland: Fergus O’Dowd,
Minister of State, Department
of Communications, Energy and
Natural Resources
• Japan: Isshu Sugawara, State
Minister, Ministry of Economy,
Trade and Industry
• Sweden: Daniel Johansson,
State Secretary to the Minister
for Information Technology and
Energy
• United States: David Sandalow,
Assistant Secretary, U.S.
Department of Energy
• Gregory Ballard, Mayor, City of
Indianapolis, Indiana, United
States
• Andrew Brandler, Chief
Executive Officer, CLP Holdings
• Rao Chalasani, Director of
Advanced Vehicle Development,
GM Technical Center India
• Anil Chaudhry, Country
President and Managing
Director, Schneider Electric India
• Srinivasan Govindrajan, Deputy
General Manager, Tata Motors
Engineering Research Centre
• Jyri Häkämies, Director
General, Confederation of
Finnish Industries EK
• Richard H. Jones, Deputy
Energy Agency
• Chetan Maini, Chief of
Technology and Strategy,
Mahindra Reva
• Wenwei Rong, General
Manager, Shanghai
International Automobile City
Group
• Rolf Stromberger, Vice President
of Business Environment and
Public Affairs Strategy, BMW of
North America
• Suderson SV, Head of Product
Engineering, Daimler India
Commercial Vehicles Pvt Ltd.
• Modesto Volpe, President, VT
Energy
Operating Agents
• Center for American Progress
• Electrification Coalition
Introduction
The objective of this roundtable was to identify
opportunities to accelerate the adoption of plug-in
electric vehicles (PEVs) and natural gas vehicles (NGVs),
with a focus on strategies that can be carried out
through public-private collaboration within the context
of the Clean Energy Ministerial. The discussion explored
policy and technical issues surrounding clean vehicle
deployment, addressing public- and private-sector
roles in creating sustainable and successful policies and
business models to reduce costs, ensure infrastructure
rollout and operation, and enhance consumer
awareness.

7
goal of having 20 million electric vehicles on the road by
2020. Both the public and private sectors have important
roles to play in addressing these challenges and driving
transformation.
Identified Barriers
The roundtable participants identified a number of
barriers to the widespread adoption of PEVs and NGVs in
the categories of cost, consumer acceptance, technology,
and infrastructure:
Cost: Both vehicle technologies have higher capital costs
than traditional petroleum-powered vehicles. Although
battery costs have dropped substantially—by more
than 50% in 3 years—the battery is still the most costly
component of a PEV. NGVs are also seen as expensive.
However, because electricity and natural gas are less
expensive than gasoline, the total cost of ownership
(TCO) for both PEVs and NGVs is potentially lower than
for traditional petroleum-powered vehicles. Commercial
fleets are particularly sensitive to TCO, so reducing costs
under that framework is especially vital to further clean
fleet development.
Consumer acceptance: Many consumers lack basic
knowledge about both PEVs and NGVs and may not
be fully informed when considering the purchase of a
new vehicle, particularly around the concept of TCO
and “range anxiety” (how far the vehicle can go without
What Are PEVs and NGVs?
Plug-in electric vehicles (PEVs) run on electricity from
an external source stored in on-board batteries.
PEVs comprise both battery-electric and plug-in
hybrid electric vehicles. Natural gas vehicles (NGVs)
are traditional internal combustion engine vehicles
configured to run on natural gas that has been
liquefied or compressed.
While personal mobility over the past century has
largely been fueled by petroleum, PEVs and NGVs have
recently established a foothold in the automotive sector,
offering the prospect of a cleaner, more fuel-diverse
transportation system. According to the Clean Energy
Ministerial’s Electric Vehicles Initiative, global PEV sales
more than doubled from 2011 to 2012, surpassing
100,000 in 2012. There are also about 15 million NGVs
on the road today, with an annual growth rate of 22.9%
since 2001.
Price spikes in the global oil market create uncertainty
and can lead to high costs for consumers and businesses.
Electricity prices, on the other hand, are relatively stable
and can mitigate risks from oil price volatility (Figure
2). Natural gas prices are also low in the United States
and may fall in other countries as the scale of liquefied
natural gas and shale gas production grows. PEVs and
NGVs may thus prove more economical than petroleum-
powered vehicles because their operating costs are much
lower and more predictable.
In the context of rising global greenhouse gas (GHG)
emissions, accelerating the adoption of both PEVs and
NGVs is also critical to achieving substantial GHG
reductions in the transportation sector. PEV and NGV
solutions can also help address volatile energy prices
while simultaneously spurring job growth in new,
advanced industries and enhancing economic prosperity
and energy security. The technologies could have a
particularly significant impact in the world’s major cities,
where local air pollution is an important concern.
To realize a market transformation in the transportation
sector, existing challenges need to be addressed in the
areas of cost, consumer acceptance, technology, and
infrastructure. Bloomberg New Energy Finance estimates
that PEV sales need to increase 80% per year to reach the

8
refueling or recharging). It is important to recognize
that consumers frequently purchase vehicles based on
what they may do rather than their average daily driving
habits, which can heighten range anxiety. Consumer
education, particularly from car dealerships, appears to
be lacking. This lack of familiarity with the technologies
may be holding back many consumers and will likely
persist unless there is more effective consumer education.
Technology: Energy storage limitations are a primary
technology obstacle for both PEVs and NGVs. Battery-
related issues for PEVs include durability, weather
performance, and charge speeds. There are also
technology challenges for PEVs related to the potentially
limited availability of rare earth materials that many
electric motors and some batteries rely on. Although
NGVs are a relatively mature technology, they also
face challenges related to fuel storage. For example,
compressed natural gas tanks require up to six times
more space than gasoline tanks and can take about twice
as long to refill.
Infrastructure: Both PEVs and NGVs require new or
enhanced refueling infrastructure. However, investment
in new refueling infrastructure may compete with other
infrastructure priorities such as roads, bridges, and rail.
Because long-term market growth cannot be maintained
on government subsidies alone, sustainable business
models (including models for refueling infrastructure) are
needed for both vehicle types. There is also a concern
that large investments in NGV infrastructure could
undermine countries’ long-term climate goals. For PEVs,
more focused attention on grid connectivity in the context
of these broader infrastructure questions could point
toward a better menu of solutions.
Potential Solutions
The roundtable participants highlighted a number
of success stories that could be used to guide future
decisions. These include the dramatic transformation
in air quality in New Delhi due in large part to the
switch to compressed natural gas in the city’s truck and
taxi fleets. A variety of progressive taxation systems
have also been used in Scandinavian countries and
elsewhere to encourage more PEV use. The creation of
“Electronic Mobility Showcases” in Germany has helped
introduce consumers to PEV product lines. In addition, an
innovative system in Paris—the Autolib program—more
effectively engages users in an electric vehicle car-sharing
program that is integrated with closer access to metro
stations and uses dedicated parking spaces and an online
reservation system. An aggressive program in the U.S.
city of Indianapolis to convert the municipal fleet to PEVs
and NGVs is designed to both save taxpayers money
and encourage consumer adoption. Finally, a variety of
integrated national plans are in place or in progress in
India, China, Ireland, Sweden, Finland, the United States,
and other places to create the policy infrastructure to
accelerate these transformations.
Overall, a range of potential solutions were identified to
drive market transformation in the future:
Cost and technology: Both government and industry
participants stressed the need to maintain rigorous
research and development (R&D) programs to solve key
technology barriers, improve fuel and energy storage,
increase driving range, and reduce costs. International
R&D cooperation is also important because it can help
address common areas of need, spread costs, and
accelerate technological breakthroughs. At present,
focusing on PEVs for personal use and NGVs for long-
haul needs and fleets could focus this cooperation, given
the ease of applying current technologies to these vehicle
classes.
On the demand side, tax and fiscal measures are vital
to spurring wider adoption, particularly while PEVs and
Figure 2. U.S. average retail alternative fuel prices. Source: EERE 2013

9
NGVs are still emerging technologies. Tax holidays,
tax credits, and other financial incentives have proven
successful at driving early adoption of these technologies
in many countries.
Consumer acceptance: Solutions vary for increasing
consumer acceptance of PEVs and NGVs. City
governments can be a good place to start deployment,
because they can adopt PEVs and NGVs in vehicle fleets,
public transportation systems, and other municipal
operations. Adopting these technologies can save
cities money while demonstrating “proof of concept”
to consumers and other fleet operators. Understanding
consumer behavior is also important. Ease of parking
(especially when linked to recharging), access to
dedicated highway lanes, and relief from congestion
taxation can be important drivers of consumer adoption.
More “enhanced experiences” for consumers are
needed, beyond the traditional limited test drives.
Recent car-sharing experiences may also provide ideas
for innovation that could be particularly relevant in
markets with reduced reliance on cars or reduced desire
to own cars, such as some youth-driven markets. In
this respect, it may be beneficial to focus more on total
mobility paradigms, through public-private partnerships,
that can link shared vehicles with rail and other public
transportation systems. Investigating how clean vehicles
can be integrated into car-sharing and other “mobility
access” programs throughout the world is an area ripe
for exploration.
Infrastructure: On the infrastructure side, PEVs should
be integrated as much as possible with smart grid
development. From the onset, each should be designed
with the other in mind. This can result in better efficiency
and catalyze innovative vehicle-to-grid solutions. If large-
scale PEV adoption occurs, the electricity grid must be
able to support it.
Key Recommendations
ƒƒ Overall, more sharing of global experiences is
needed, with respect to what works and what does
not work.
ƒƒ More cooperation among governments, researchers,
and the private sector is needed to produce detailed
empirical studies of the factors currently driving
consumer choices. This will help to better identify and
anticipate which policy instruments can best serve
positive trends in the market.
ƒƒ To enhance Clean Energy Ministerial contributions in
this area, the Electric Vehicles Initiative should work
more closely with the 21st Century Power Partnership
and the International Smart Grid Action Network
to better embed the discussion of clean vehicles in
the broader discussion about infrastructure and grid
choices.
“Such events provide an excellent international platform for government representatives, industry, and
other participating stakeholders to better understand each other’s needs, to learn from each other, and to
identify new ideas.”
Dr. Rolf Stromberger,Vice President of Business Environment and Public Affairs Strategy, BMW of North America
“I was privileged to be the only mayor to participate in this global clean energy summit.The emphasis on
clean transportation technology truly holds the potential to positively change the future economy of the
world.”
Gregory A. Ballard, Mayor of Indianapolis, Indiana, United States

10
Power Systems in Emerging
Economies3
Moderator
• Joan MacNaughton, Executive
Chair, World Energy Trilemma,
World Energy Council
• Australia: Subho Banerjee,
Deputy Secretary, Department
of Resources, Energy and
Tourism
• Denmark: Hans Jørgen Koch,
Deputy Permanent Secretary,
Ministry of Climate, Energy and
Building
• India: Jyotiraditya Scindia,
Minister of State, Ministry of
Power
• Norway: Ane Hansdatter
Kismul, State Secretary, Minister
of Petroleum and Energy
• Russia: Alexandre Mitreykin,
Deputy Director of the
Department of Energy Efficiency
and Modernization of Energy
Sector, Russian Energy Agency
• South Africa: Elizabeth Dipuo
Peters, Minister, Department of
Energy
• United States: Steven Chu,
Secretary, U.S. Department of
Energy
• Ajit Advani, Director Sustainable
Energy Global, International
Copper Association
• Arup Roy Choudhury, Chairman
and Managing Director,
National Thermal Power
Corporation, India
• Brian Dames, CEO, Eskom
• Pramod Deo, Chairman,
Central Electricity Regulatory
Commission, India
• Ditlev Engel, CEO, Vestas
• Didier Houssin, Director of
Sustainable Energy Policy
and Technology, International
Energy Agency
• Jeung-Soo Huh, Chief Director,
Korea Energy Management
Corporation
• Lawrence Jones, Vice President,
Regulatory Affairs, Policy &
Industry Relations, Alstom Grid
• Caio Koch-Weser, Vice
Chairman, Deutsche Bank
• Takemitsu Kunio, Senior Vice
President, NEC
• R.N. Nayak, Chairman and
Managing Director, Power Grid
Corporation of India
• Reji Kumar Pillai, President,
India Smart Grid Forum
• Jim Rekoske, Vice President and
General Manager, Renewable
Energy and Chemicals Business,
Honeywell (USA)
• Richard Samans, Executive
Director, Global Green Growth
Institute
• Tulsi Tanti, Chairman and
Managing Director, Suzlon
Energy Limited
• Tom Weirich, Director of
International Programs,
American Council on
Renewable Energy
Operating Agent
• National Renewable Energy
Laboratory
Introduction
This roundtable sought to identify a set of policy and
regulatory principles that could help accelerate power
system transformation in emerging economies, including
those that can be carried out through the Clean Energy
Ministerial’s 21st Century Power Partnership. The discussion
addressed the impact of key elements driving changes
in power systems and how integrating each of these
elements into comprehensive planning, policy making, and
regulation offers opportunities to provide clean, affordable,
reliable power and other energy services.

11
the need for system flexibility and challenge existing
regulatory and market structures. Second, smart grid
technologies and demand response programs allow
for greater reliability, effective load balancing, and
overall system intelligence while also opening up new
possibilities for dynamic, interactive energy systems
and markets. Demand-side management is not just
important for dynamic demand response, however.
Significant portions of the world have only intermittent
access to electricity due to constraints on generation and
on transmission capacity. Demand-side management
can optimize that capacity and improve reliability. Third,
energy efficiency has proven to be a cost-competitive,
quickly deployable strategy for minimizing capacity
constraints while lowering costs to end users. Lastly,
integrating each of these elements into comprehensive
planning, policy making, and regulation offers an
opportunity to provide clean, affordable, reliable power
and other energy services.
Identified Barriers
When evaluating technology and infrastructure
options over long-term investment timescales, the
rapidly evolving power system landscape poses distinct
challenges to conventional resource planning and policy
and regulatory approaches. Simply understanding the
ongoing changes in resources, demand, and technology
is a fundamental difficulty. On the policy and regulatory
side, challenges include the complexity of policies;
uncertainties around incentives; the competition for
subsidies; and a lack of coordination in the legal, market,
and institutional ecosystems.
There are also challenges related to innovation, support,
and investment. These include a lack of experience in
operating twenty-first century power systems; the diversity
of solutions needed for different countries or regions;
difficulties in attracting investment; and a lack of public
understanding and support, particularly regarding public
The International Energy Agency estimates that 5,891
gigawatts (GW) of new power capacity will be added
between 2012 and 2035, with 64% (3,804 GW) of
that added in countries outside of the Organisation
for Economic Co-operation and Development (Figure
3). Non-hydropower renewable energy will provide
40% of the added power—2,377 GW of the 5,891 GW
added. For all countries, but particularly in fast-growing
emerging economies, changes in supply, delivery, and
demand are driving the transformation of power systems.
Governments and energy regulators face a number
of challenging and complex questions as they move
to develop clean, modern power sectors. The rapidly
evolving landscape of variable renewable resources,
energy efficiency, smart grid technologies, and flexible
demand-side management offers the opportunity to
create cleaner, lower carbon, and more reliable power
sectors. However, it also introduces complex challenges
related to the planning, financing, and operation of these
systems.
Emerging economies face all of these challenges as well
as the additional issues of expanding access to energy
services, minimizing technical and nontechnical losses,
and improving power quality and reliability, all while
ensuring the financial stability of electricity providers.
Some countries or regions have been able to address
many of these issues through the implementation
of policy, regulatory, technology, and market design
elements that can serve as valuable examples. Adoption
of frameworks based on these design elements may be
able to ensure increased energy efficiency, enhanced
clean energy supply, and expanded energy access.
Participants in this roundtable focused on four key
elements driving change in power systems. First,
increasing shares of variable renewable energy increase

12
expenditures. Overall, there is a lack of comprehensive
planning and coordination of policy frameworks to
address cross-cutting issues.
Potential Solutions
The roundtable participants agreed that adopting a
holistic view of the power system and its relation to
other parts of the economy can help provide solutions
to these issues. Power sector solutions are motivated by
understanding that reliable delivery of energy services,
including power for lighting, heating, cooling, and
plug loads, enables greater economic productivity and
supports sustainable economic development.
Successful approaches to power sector reform share the
following key aspects:
ƒƒ They utilize an integrated approach to planning,
which encompasses the comprehensive inclusion of
energy efficiency of generation, transmission, and
distribution as well as end-use applications and
active demand-side management.
ƒƒ They enable power system flexibility and
responsiveness. Regulations governing the system
must not impede flexibility, but rather should enable
the efficient use of all assets across the system.
ƒƒ They take into account energy service demands and
seek to optimize the efficient, affordable, reliable
provision of those services. Examples of this holistic
approach include hybrid systems that provide power,
water, heating, and cooling.
In addition, it is critical to develop and disseminate
innovative, refined planning methods and policy and
regulatory approaches that are robust across timescales
and dynamic technology landscapes. Greater sharing
of lessons learned from past policy and regulatory
approaches is essential, including the use of fiscal
instruments such as feed-in tariffs and renewable
energy credits, as well as ancillary services markets and
advanced forecasting and integration regulations. A focus
on capturing and sharing best practices in integrated
planning and enabling system flexibility is also important.
This includes first how to assess flexibility and then how to
build it into market design, and incorporate approaches
for demand response, use-based valuation, reliability
services, and advanced forecasting.
The participants also noted that distributed systems with
integrated storage may provide more comprehensive
energy services solutions. For example, hybrid systems
that use excess power from distributed mini-grid wind
or solar could provide cooling or heating, and would
be both highly efficient and economically attractive. For
many applications, the technologies already exist and
could deliver highly reliable, affordable services. In many
cases, innovative hybrid systems might be more cost-
effective than traditional off-grid generators (such as
diesel) or grid extension.
Figure 3.World net incremental capacity additions by type, New Policies Scenario. Source: IEA 2012

13
Key Recommendations
There are several key recommendations to advance
power markets:
ƒƒ Provide the appropriate regulatory and business
environment to enable financially viable solutions,
particularly through public-private partnerships. This
includes assigning a monetary value to attributes
of clean energy (e.g., through renewable energy
credits).
ƒƒ Utility or energy service business models must
adapt and evolve to ensure financial success. This
may include taking service-based approaches and
deriving revenue from distributed generation assets.
ƒƒ Policies and regulations need to be examined and
revised—to remove barriers and potentially offer
incentives—to enable the delivery of clean energy
services as quickly as possible.
ƒƒ Capture and share best practices to address the
existing gaps in knowledge. This can be done through
the 21st Century Power Partnership and can help lay
the groundwork for continued successful dialogue
that will meet the challenge of rapidly accelerating
energy access in emerging economies while
simultaneously decarbonizing power systems globally.
“The discussion threw up some really interesting ideas for how to drive forward a more sustainable power
system, using current technologies in innovative ways to focus on serving existing and future customer
needs, [and] it also recognized the need for ‘disruptive regulation’ to drive the needed changes to utilities’
business models to enable this to happen—a process which will require deep public/private collaboration
of the kind fostered by the Clean Energy Ministerial.“
Joan MacNaughton, Executive Chair,World Energy Trilemma,World Energy Council

14
Renewables Policy and
Finance4
Moderator
• Andrew Steer, President and
CEO, World Resources Institute
• Denmark: Hans Jørgen Koch,
Deputy Permanent Secretary,
Ministry of Climate, Energy and
Building
• Germany: Dr. Karsten Sach,
Deputy Director-General of
International Cooperation,
Federal Ministry for the
Environment
• India: Montek Singh Ahluwalia,
Deputy Chairman, Indian
Planning Commission
• Ireland: Fergus O’Dowd,
Minister of State, Department
of Communications, Energy and
Natural Resources
• Norway: Jan Øivind Johansen,
Assistant Director General,
Ministry of Energy
• Russia: Alexandre Mitreykin,
Deputy Director of the
Department of Energy Efficiency
and Modernization of Energy
Sector, Ministry of Energy
• Sweden: Daniel Johansson,
State Secretary to the Minister
for Information Technology and
Energy
• United Kingdom: Chris Barton,
Director of International and
Domestic Energy Security,
Department of Energy and
Climate Change
• United States: Steven Chu,
Secretary, U.S. Department of
Energy; and David Sandalow,
Assistant Secretary, U.S.
Department of Energy
• Andrew Brandler, CEO, CLP
Holdings
• Ardeshir Contractor, Managing
Director and CEO, Kiran Energy
• Jyri Häkämies, Director
General, Confederation of
Finnish Industries
• Caio Koch-Weser, Vice
Chairman, Deutsche Bank
• Michael Liebreich, CEO,
Bloomberg New Energy Finance
• Jim Rekoske, Vice President and
General Manager, Renewable
Energy and Chemicals Business,
Honeywell (USA)
• Teresa Ribera, Director General
of Strategic Development and
New International Markets,
ISOFOTON
• Parag Shah, Managing Partner,
Mahindra & Mahindra Ltd.
• Sumant Sinha, CEO, Renew
Power
• Tulsi Tanti, Chairman, Suzlon
Energy Limited
• Maria van der Hoeven,
Energy Agency
• Lakshmi Venkatachalam, VP for
Private Sector and Cofinancing
Operations, Asian Development
Bank
• Jonathan Winer, Managing
Director, Nereus Capital
Operating Agent
• Bloomberg New Energy Finance
Introduction
This roundtable sought to identify policies and regulatory
mechanisms to mobilize larger capital flows into
renewable energy. The discussion explored the impact of
policy uncertainty, policies that can aid policy makers and
the finance community, major risk factors, measures to
ramp up the availability of low-cost debt from domestic
lenders, the role of multilaterals, and measures to
increase capital flows from institutional investors.

15
Identified Barriers
The roundtable participants identified a number of
barriers that impact renewable energy financing:
Policy uncertainty: The possibility of governments
cutting back previously promised incentives or performing
unannounced reviews has created uncertainty regarding
the future cash flows of renewable energy projects.
Communication during policy formulation: The
private sector is generally not included when policies
are being formulated. This lack of involvement and
communication tends to create a lack of trust in the
resulting policy due to perceived risks or uncertainties
that impede investment.
Access to low-cost debt: The cost of debt has a major
bearing on the levelized cost of electricity generation
from renewables and restricts deployment in countries
with high interest rates. In addition, low participation
from certain categories of investors, such as pension and
sovereign wealth funds, and a lack of focus on innovative
mechanisms could impede future growth in financing.
Integrated planning: When policy targets are set for
specific sectors such as wind or solar, integrated planning
is sometimes neglected, which can result in transmission
system unavailability, grid instability, and payment delays.
This can result in significant negative consequences. In
certain states or provinces within emerging markets,
grid curtailment1
is a growing concern, particularly
where renewables compose more than 10% of installed
generation capacity. This curtailment may significantly
impact the profitability of a project.
New investments in clean energy (which excludes large
hydropower but includes energy-smart technologies that
enable more efficient use of electricity and fuels) declined
11% worldwide in 2012 to $269 billion, according to
Bloomberg New Energy Finance (BNEF) (Figure 4).
The fall was partly due to regulatory uncertainty in big
markets such as the United States, India, Spain, and
Italy. In some cases, fiscal austerity led to the rollback
of renewable energy subsidies, leaving investors and
project developers facing uncertainty and higher risk.
Sharply lower prices for solar and wind equipment also
contributed to the lower investment volume, although
they have also allowed for more capacity to be installed
per dollar of funding.
Policy makers are challenged to provide investors with
stable and transparent policies or, where that is not
possible, flexible policies that address fiscal challenges
while still offering sufficient incentive to encourage
investment. In emerging economies, policy makers
must address these challenges while making the
huge investments required to build out their energy
infrastructures.
Within this context, policy makers face the dual issues of
scope and urgency; BNEF estimates that clean energy
investments must increase two to three times in order for
carbon dioxide emissions to peak by 2020 and then start
to decline.
1. Grid curtailment occurs when system operators reduce the generation
of power from renewables and the output to the grid for various
reasons, including limited transmission capacity.

16
Public acceptance: Clean energy deployment can also
face resistance from local communities that may believe
clean energy is more costly than conventional energy or
may disrupt their way of living. This can cause delays and
increase risk, thereby increasing the costs or stranded
assets.
Information access: Overall, a lack of information- and
experience-sharing between various public and private
entities on policy, technology, and financing may also
lead to policies that negatively affect investments.
Potential Solutions
A number of potential solutions were identified to
address the barriers:
Policy uncertainty: Governments could reduce
uncertainty about future actions by defining
predetermined policy review periods. The enforcement
of regulations such as renewable purchase obligations
needs to go hand-in-hand with the creation of incentives.
Communication during policy formulation: To
improve communication during policy formulation,
policy makers could invite feedback and incorporate
suggestions from key stakeholders such as power
generators, government-owned or -regulated power off-
takers, large private power buyers, financial regulators,
equipment providers, the insurance industry, institutional
investors, and public communities. This more integrated
approach would then create a better understanding and
acceptance of the policy.
Access to low-cost debt: Facilitating a lower cost of
capital could have a significant impact on clean energy
deployment. However, the provision of low-cost debt
from government institutions was not considered a viable
long-term solution because it could create inefficiencies
in business models, fundraising activities, and project
execution. Local commercial banks have the potential to
significantly increase access to low-cost debt. Increasing
their experience and expertise and expanding capacity
through training programs is crucial.
Investment flows in clean energy could also be
increased by leveraging the involvement of multilateral
financial institutions and institutional investors such
as pension and sovereign wealth funds. Green bonds,
crowdsourcing, charitable giving, and vendor financing
are also mechanisms that could be better promoted.
In some countries, governments have created sectoral
lending limits or carve-outs for banks. In such cases,
defining a specific proportion for clean energy could
increase monetary flows to the sector.
Integrated planning: Integrated planning frameworks
and increased coordination between various
governmental ministries and departments are needed to
address issues such as transmission system constraints.
The frameworks should also target the reduction of soft
costs, including items such as permitting and clearance
fees. Facilitating investments in upgrades to the power
transmission network, smart grid solutions, and research
and development of storage technologies is also critical
to increasing the penetration of renewables.
Figure 4. Investments in clean energy, 2004–2012. Source: Liebreich 2013

17
Public acceptance: Increasing public awareness of
the rapidly declining cost of clean energy technologies
as well as their life cycle environmental benefits could
increase acceptance.
Information access: Governments can play an
important role in establishing long-term and flexible
support structures to incentivize the deployment of
renewable energy technologies. Steps such as organizing
resources, increasing data availability, and developing
analysis tools will help accelerate the use of best
practices.
Key Recommendation
Considering how critical financing is to ramping up the
deployment of renewable energy, an increased focus on
financing was recommended within the Clean Energy
Ministerial’s framework. Specifically, ministers asked for
a report on clean energy finance to be delivered at the
fifth Clean Energy Ministerial. This report could cover
the status of clean energy financing, best practices from
various countries about policies or incentives that spurred
investments, and potential areas for future work. The
work stream would comprise various public- and private-
sector stakeholders as well as nongovernmental and
international organizations, bringing together experts
with relevant work experience within the financing area.
“The Clean Energy Ministerial has brought together countries that are committed to the deployment and
use of clean, efficient, and sustainable energy.The CEM is making a difference in the energy sector globally
by promoting and sharing information on progress in deploying clean energy technologies, policies, and
challenges.”
Elizabeth Dipuo Peters, South Africa Minister of Energy

18
Energy Management Systems
Moderator
• Jigar V. Shah, Executive
Director, Institute for Industrial
Productivity
• Australia: Subho Banerjee,
Deputy Secretary, Department
of Resources, Energy and
Tourism
• Finland: Marja Rislakki, State
Secretary of Economic Affairs,
Ministry of Employment and
Economy
• Germany: Wolfdieter
Böhler, Head of Division for
International Energy Policy,
Federal Ministry of Economics
and Technology
• India: B.K. Chaturvedi, Member
(Energy), Indian Planning
Commission
• Italy: Gilberto Dialuce, Director
General for Energy Supply
and Infrastructure, Ministry of
Economic Development
• Mexico: Odón de Buen
Rodríguez, Director General,
National Commission for
Efficient Use of Energy
• Arne Barden, Head of Facility
Management, Daimler India
Commercial Vehicles
• Frances Beinecke, President,
Natural Resources Defense
Council
• Anil Chaudhry, Country
President and Managing
Director (India), Schneider
Electric
5
• John Drexhage, Director of
Climate Change and Energy
Management, International
Council for Mining and Metals
• Kazuo Furukawa, Chairman,
New Energy and Industrial
Technology Development
Organization (Japan)
• Didier Houssin, Director,
Sustainable Energy Policy
and Technology, International
Energy Agency
• Jeung-Soo Huh, Chief
Executive Officer, Korea Energy
Management Corporation
• Lawrence Jones, Vice President
of Regulatory Affairs, Policy
and Industry Relations, Alstom
Group
• Shishir Joshipura, Managing
Director and Country Manager
(India), SKF
• Paparao Kodali, Vice President
and General Manager,
Ingersoll Rand Engineering and
Technology Centers (India)
• Ian MacKinnon, Executive
Director, Institute for Future
Environments - Queensland
Institute of Technology
• Kevin McKinley, Deputy
Secretary General, International
Standardization Organization
• Maria Paatero-Kaarnakari,
Senior Vice President, Fortum
Asia
• Rolf Stromberger, Vice President
of Business Environment and
Public Affairs Strategy, BMW
• Jean Sweeney, Vice President
of Environmental, Health,
and Safety Operations, 3M
Company
Operating Agent
• The Institute for Industrial
Productivity
Introduction
This roundtable sought to identify a set of smart policies
and regulatory mechanisms to mobilize energy efficiency
at a large scale and accelerate corporate adoption of
energy management systems (EnMS). The discussion
addressed the roles of government and the private
sector—including industry, energy service companies,
utilities, and financial institutions—in promoting energy
management programs, as well as opportunities and next
steps for enhanced public-private cooperation.

Identified Barriers
Roundtable participants identified a number of barriers
to improving industrial energy efficiency and increasing
EnMS implementation:
Market and Operational: Low energy prices, tax
structures, and transaction costs may disincentivize
investments in EnMS. The real or perceived technical and
operational risk associated with implementation may also
be a hindrance.
Informational and Organizational: Limited
knowledge of new energy-saving technologies and
strategies, a lack of institutional focus on energy issues,
and a lack of communication and coordination among
company personnel who deal with aspects of company
energy use also present barriers.
Financial: Investment decisions are made that may not
adequately consider the full value of energy efficiency
in the financial criteria. Other financial barriers include
short payback period requirements, a lack of access to
capital, and views that energy efficiency is not a strategic
investment in future profitability.
Because of these barriers, widespread uptake of EnMS
in industry is not considered likely without supporting
programs from government or a third party such as a
utility.
19
What Is an Energy Management System?
An energy management system is a suite of procedures
and practices that ensure systematic tracking,
analysis, and planning of energy use in industry. It
enables companies to maximize energy savings and
continuously improve energy performance through
organizational and technology changes.
Industrial energy use accounts for roughly one-third
of global energy demand and is growing rapidly,
particularly in developing countries. In the midst of this
growth, there is significant potential to decrease energy
consumption and improve energy efficiency in this sector.
Yet, opportunities to improve industrial energy efficiency
remain severely underexploited. The International Energy
Agency’s World Energy Outlook 2012 estimates that
two-thirds of the economic potential to improve energy
efficiency in the industrial sector remains untapped
(Figure 5).
As governments and industries look for cost-effective
ways to reduce industrial demand for energy, EnMS are
proving to be a very effective option. Systematic energy
management equips companies with practices and
procedures to identify and implement new opportunities
for improvement and achieve energy-saving objectives
on an ongoing basis. Those industries that have adopted
EnMS have reduced total energy use by 10%–30%.
That saved energy translates into a number of benefits:
reduced energy costs and increased productivity for
the adopting industry, and economic growth, increased
energy security, and reduced greenhouse gas emissions
for the national and international communities.
Some governments have mandated corporate EnMS
adoption, while others are encouraging voluntary uptake
by providing financial incentives or awards. Other
stakeholders are also driving uptake. For example,
energy providers, multinational companies, and
multilateral and commercial banks around the world
have started to initiate large-scale energy efficiency
programs based on EnMS. Despite this global push for
EnMS, encouraging widespread adoption remains a
challenge.

20
Potential Solutions
To address these barriers, roundtable participants
noted that governments may need to take an active
role in accelerating global EnMS adoption. Even with
demonstrated monetary savings and a range of co-
benefits, progress is still slow, uptake is minimal, and
energy efficiency is not a high priority within corporate
culture.
However, there was no single government policy or
program identified for promoting EnMS. Governments
around the world are utilizing voluntary approaches,
mandatory approaches, and hybrid mandatory-voluntary
approaches, and each type has its own merits. Voluntary
approaches feature incentives that may include tax
rebates and recognition programs. Support through
workshops, technical assistance, tools, and training
can also drive implementation. Mandatory approaches
require implementation of EnMS. To maximize success in
any of these approaches, participants noted that policies
should not be too prescriptive. Ambitious targets, strong
management by government, and commitment from the
private sector to build capacity and foster investment are
considered crucial.
To accelerate industry implementation, numerous
channels should be used to share and disseminate
EnMS best practices and results to educate industry and
practitioners. Existing Clean Energy Ministerial (CEM)
channels could be utilized to facilitate information-
sharing from company to supplier, company to company,
and government to government. Mentoring from
companies to their suppliers, and other soft drivers
such as codes of conduct, have also been effective
mechanisms to implement EnMS in supply chains.
Other important aspects of advancing industrial energy
efficiency include establishing standardized systems
of measurement, monitoring, and benchmarks, and
establishing baselines to track progress. In addition,
there is a great need for disclosure and transparency
in corporate actions to improve energy efficiency. This
may be partly driven by investors who are increasingly
interested in receiving this information.
Various stakeholders should be involved in adopting and
promoting EnMS with the following key considerations:
ƒƒ Determining how governments can encourage EnMS
uptake in the small and medium enterprise (SME)
sector is of paramount importance. This sector is
likely in need of the most assistance and has great
unrealized potential.
ƒƒ Utilities are not incentivized to promote energy
management. Potential policies and programs to
motivate them to adopt demand-side management
models should be further explored.
ƒƒ Large industries should be considered “community
power blocks,” and they should work and share their
experiences with industry associations and vendors as
well as through peer-to-peer networks.
ƒƒ There is little coordination within government
or between government and the private sector.
Enhanced coordination across a large “ecosystem”
of stakeholders that includes local and central
governments, companies, energy service companies
(ESCOs), utilities, and financial institutions to improve
policy development and communications would
increase efficiencies and create buy-in from that
range of stakeholders.
Figure 5. Energy efficiency potential realized by sector in the New Policies Scenario. Source: IEA 2012

21
ƒƒ One participant cited the U.S. Environmental
Protection Agency’s ENERGY STAR program as a
robust and effective platform for institutionalizing
EnMS in the United States. The program functions
as a mechanism for disseminating and sharing best
practices, encouraging transparency for corporate
action, and increasing a company’s reputation
among its suppliers and consumers at large.
Key Recommendations
There are several recommendations for increasing the
adoption of EnMS:
ƒƒ Increase capacity-building efforts and best practice
dissemination at all levels: large industries, supply
chains, SMEs, third parties, industry associations, and
governments.
ƒƒ Create greater coordination and engagement at the
national level among governments, the private sector,
and third parties to strengthen energy management
programs.
ƒƒ Build greater consistency in approaches to
benchmarking energy use and measuring and
verifying energy performance improvements.
ƒƒ Support efforts to promote greater corporate
transparency and disclosure of energy information.
ƒƒ Encourage companies that have demonstrated a
leadership role in implementing EnMS to promote
adoption throughout their supply chains.
ƒƒ Share government best practices on policies and
programs to incentivize third parties, such as utilities,
financial institutions, and ESCOs, to drive EnMS
implementation in industry.
These areas can be addressed by increased effort
and collaboration among the CEM’s Global Superior
Energy Performance Partnership (GSEP), the Institute for
Industrial Productivity, the Energy Management Action
Network, the United Nations Industrial Development
Organization, and other related international initiatives.
“The roundtable on energy management systems brought out an excellent discussion of how government
and industry can work together using innovative programs to achieve the common goal of reducing energy
consumption.Valuable insights were shared and learned by all participants.”
Jean Sweeney,Vice President of Environmental, Health, and Safety Operations, 3M Company

22
Mini-Grid Development
6
Moderator
• Gauri Singh, Director
of Country Support and
Development, International
Renewable Energy Agency
• India: Tarun Kapoor, Joint
Secretary, Ministry of New and
Renewable Energy
• India: Rohit Kansal, Ministry of
New and Renewable Energy
• Japan: Isshu Sgawara, State
Minister of Ministry of Economy,
Trade and Industry
• United Kingdom: Phil Marker,
Head of Joint HMG Climate
Unit, UK Department for
International Development
• United States: William
Hammink, India Mission
Director, U.S. Agency for
International Development
• Anshu Bharadwaj, Executive
Director, Center for Study of
Science, Technology & Policy
• Jamshyd Godrej, Chairman
and Managing Director, Godrej
Group
• Bazmi Husain, Country
Manager of India, ABB
• Richard H. Jones, Deputy
Energy Agency
• Yashraj Khaitan, CEO, Gram
Power
• Takemitsu Kunio, Senior Vice
President, NEC Corporation
• Peter Lilienthal, CEO, HOMER
Energy LLC
• Terry Mohn, CEO, General
Microgrids
• Jeeva Perumalpillai-Essex,
South Asia Manager for
Sustainable Business Advisory,
International Finance
Corporation
• Neeraj Prasad, Manager,
Climate Change Practice, World
Bank
• Sairam Prasad, CTO, Bharti
Infratel
• Sandra Retzer, Managing
Director, Younicos
• Rahul Sankhe, Managing
Director (India), SunEdison
• Ajay Sharma, Managing
Director, Entura India
• Frans Vreeswijk, General
Secretary and CEO,
International Electrotechnical
Commission
Operating Agent
• National Renewable Energy
Agency
Introduction
This roundtable synthesized lessons learned and brought
together practitioners and policy makers to cooperatively
identify the barriers to further scaling up mini-grids. The
discussion addressed potential solutions to addressing
these barriers, recognizing that mini-grids are a key
component of achieving universal energy access. Primary
discussion topics included mini-grid energy access
opportunities, business models, technology, financing,
policy, information dissemination, regulatory policy, and
capacity-building.

23
Modern mini-grids can be grid connected or operate
as a stand-alone system. In addition, they are scalable,
meaning additional generation capacity can be added
to meet growing loads without compromising the stable
operation of the existing mini-grid system.
The majority of mini-grid projects are currently in the
pilot phase. However, there is increasing interest in
advancing mini-grid technologies and practices and
accelerating deployment, due in part to the falling costs
of renewable energy generation and improvements that
make system maintenance easier.
Barriers
Even with growing interest in mini-grids, there are still a
number of barriers to scaling up deployment:
Technology: Renewable-energy-based mini-grids require
energy storage technology, such as batteries, which
can be expensive and significantly increase overall cost.
Hybrid mini-grids can improve the reliability of power
generation, but they may also add complexity and cost.
Currently, mini-grids are customized for each location,
which also adds additional cost. Technical expertise is
often difficult to find at the local level, posing a challenge
in maintaining mini-grids and ensuring their reliability.
Business models and financing: Mini-grids often
have significant up-front capital costs because they
are customized for each location and frequently rely
on renewable energy technologies. There are very few
What Is a Mini-Grid?
A mini-grid is an integrated energy system consisting
of interconnected loads and distributed energy
resources—including generators and energy storage
devices—that, as an integrated system, can operate in
parallel with the utility grid or disconnected from the
grid in an intentional islanding mode.
Overview
Decentralized power systems will play a significant role
in efforts to address the large gaps in rural energy access
around the world. In 2010, the International Energy
Agency estimated that “to achieve universal access to
electricity, 70% of the rural areas that currently lack
access will need to be connected using mini-grid or off-
grid [decentralized] solutions.” More than 90% of these
systems will be driven by renewable energy sources
(Figure 6).
Mini-grids and other decentralized solutions may be
more attractive than larger, centralized solutions in rural
areas for a number of reasons. First, they can often be
deployed more rapidly than grid solutions. Second, they
do not rely on extending grid-connected generation
capacity, which is a much larger, more resource-intensive,
and longer-term effort. Third, mini-grid solutions
provide local business development and job creation
opportunities—they have been used to provide power
for small industrial uses in addition to households and
small businesses. Even in areas with the prospect of
future power system development, mini-grids can play
an important role by providing near-term electrification.
Once the grid extends to these areas, the installed mini-
grids can provide reliability and ancillary services to the
grid-connected regions.
Importantly, mini-grids are customizable to local contexts,
needs, and energy resources. Well-designed mini-grid
systems are based on local needs and can leverage
renewable, clean energy sources such as bioenergy,
wind, solar, and hydropower. Hybrid mini-grids—systems
that combine renewable energy with fossil-fuel-powered
generators—can be used to increase the reliability of a
system and provide 24-hour power. Modern, smart mini-
grids also incorporate energy efficiency technologies,
improving load management, limiting power demand
during peak hours, and encouraging conservation.

24
established financing models for mini-grids. Banks
often prefer to provide loans for large projects that are
grid connected, leaving mini-grid developers to rely on
government subsidies and grants from donors. The lack
of sustainable business models, uncertainty over demand,
and concern about consumers’ ability to pay for service
also raise the perceived risk for investors.
Policy: Existing policies often do not address the
variety of available methods for achieving rural/remote
electrification and instead encourage electrification
through the central grid. Policies also may not clarify
where and when the central grid will be extended and
what business models or rules may apply when the grid
does arrive. Tariff structures, ill-defined service areas,
and a lack of clarity regarding operating licenses may
also impede mini-grid solutions. Subsidy policies are
often designed with short-term goals in mind and are not
effective in promoting long-term performance.
Regulatory: No standard operating procedures, quality
standards, or health and safety standards currently exist
for establishing mini-grids. This results in a perception
that mini-grids are high-risk, which may discourage
private investment and funding opportunities. There
is also a lack of protection for developers when areas
served by mini-grids become grid connected, which
makes it unlikely that developers and investors will
support mini-grids in regions with any potential for future
grid connection.
Information: There is a shortage of information in the
public domain regarding process issues, permitting, and
standards for mini-grid developers. There is also a lack
of consumer awareness and access to information. Large
global corporations and very small local players both
need information in order to evaluate whether to enter
the market.
Potential Solutions
The roundtable discussion focused on a variety of
potential solutions to the identified barriers:
Technology: Mini-grid system design must respond to
local needs and available energy resources. Remaining
technology-agnostic will provide maximum flexibility
and financial feasibility. Research and development,
along with demonstration projects, can continue to
improve energy storage technologies and reduce costs.
Standards are important to level the playing field and
drive down prices. A complete set of mini-grid standards
could be developed by convening a wide range of
stakeholders. Local involvement and training is essential
for a successful and reliable power system. Training and
scheduled operations and maintenance services can
increase system life and reliability. It will be important
to invest in mini-grid capacity-building to facilitate more
widespread and easier installation and maintenance of
systems. Load management technologies that enable grid
managers to limit power demand during peak hours and
encourage conservation should be leveraged.
Business models and financing: Business solutions
based on high-value, bankable “anchor tenants” such as
telecommunications companies could represent a new
solution driven by the private sector. The incorporation
of smart solutions, including theft protection and
prepayment meters, will also help advance the
development of viable business solutions.
Encouraging the banking sector to recognize that mini-
grids are different from the rest of the electricity sector
will be important. Support for development projects
conducted in parallel with mini-grid projects can improve
the standard of living for consumers, increasing demand
for electricity as well as consumers’ ability to pay. There
may also be a possibility to leverage advance market
commitments (binding contracts that secure revenues) to
finance mini-grids.
Figure 6. Incremental electricity generation and investment in the Universal Modern Access Case, 2010–2030. Source: IEA 2010

25
Policy: It is important to create policies that make
concessions for aggregated anchor loads, such as
telecommunications loads, with obligations for local
electrification and support for development opportunities.
Other potential solutions include creating specialized,
higher-valued renewable energy certificates for mini-
grids; defining areas that are likely to be grid connected
in the near future; creating beneficial tariff structures
for mini-grids; and creating an incentive structure that
rewards small and large installations.
Regulatory: Regulatory and policy regimes that support
near-term mini-grid expansion are needed. Regulations
also need to be light-handed and simplified to streamline
permitting, clearances, and application procedures.
Ideally, they should provision for the various types of
mini-grids as well as local circumstances, and they could
perhaps delegate regulatory authority to regional or
local bodies. Quality standards need to be realistic and
affordable. Clarity is also needed regarding guidelines
and rules for when the grid may reach a territory served
by a mini-grid.
Information: Collecting and sharing information is a
priority, particularly in terms of how it can help inform
smart policies. One potential solution is to create
databases that track region-specific demand-side
information, assess energy resources, and document best
practices.
Key Recommendations
The following recommendations and proposed actions
emerged from the roundtable discussion:
ƒƒ Develop standards to set a level playing field,
encourage investment, and help drive down prices.
The International Electrotechnical Commission
proposes to develop a complete set of mini-
grid standards, including conformity assessment
schemes and certification of installation and repair
companies, among other elements. Additional
potential stakeholders include the International
Finance Corporation (IFC) and the United Nations
Foundation Mini-grid Practitioner Network, both of
which are working on or have expressed support for
the creation of standards.
ƒƒ Establish viable and long-term business models
for mini-grids, including those backed by anchor
tenants and prepaid meters, along with methods for
increasing private and public financing options. As
a representative of a telecommunications anchor
tenant, Bharti Infratel (India) expressed a strong
need for reliable, quality power and offered to
broadly share telecommunications requirements
with mini-grid providers. India’s Ministry of New and
Renewable Energy is working on a scheme to provide
60%–70% of the capital for mini-grid installers, with
the remaining capital to be provided by financial
institutions and long-term players providing the
service. The United States Agency for International
Development (USAID) recently approved a credit
guarantee to mobilize $100 million in financing, part
of which will focus on off-grid renewable energy to
improve access to energy.
ƒƒ Develop energy resource and demand-side
information, especially for rural areas, as well
as data on existing mini-grid companies and
projects. Platforms for making the information
readily available also need to be established. The
International Renewable Energy Agency proposed
to undertake data collection within its 120 member
countries. The IFC is also creating a database of
mini-grid companies in India.
ƒƒ Invest in capacity-building. Design, installation,
operations, and maintenance skills are critical
components to a sustainable solution. Within India,
USAID, with input from the Council on Energy,
Environment, and Water, is exploring creating an
alliance of stakeholders to help developers mobilize
funds, assist with training and capacity-building, test
and certify technologies, and advocate for investor-
friendly policies and regulations.
“The paradigm shift in mini-grids is happening. Policy makers, financial institutions, and funding agencies
are viewing mini-grids as a viable option, integrated into the larger energy of the country, for supporting
entrepreneurs through policy and requisite funding.”
Gauri Singh, Director of Country Support and Development, International Renewable Energy Agency

26
Annex 1: References
I
EERE (Office of Energy Efficiency and Renewable Energy).
2013. “Alternative Fuels Data Center; Alternative Fuel
Price Report.” U.S. Department of Energy. Last modified
May 28. http://www.afdc.energy.gov/fuels/prices.html.
International Energy Agency (IEA). 2011. “Energy for All.”
Special excerpt of World Energy Outlook 2011. Paris: IEA.
http://www.iea.org/papers/2011/weo2011_energy_for_
all.pdf.
IEA. 2012. World Energy Outlook 2012. Paris: IEA. http://
www.worldenergyoutlook.org/publications/weo-2012/.
Liebreich, Michael. 2013. “Global Trends in Clean
Energy Investment.” Presentation at the Fourth Clean
Energy Ministerial, New Delhi, April 17. http://
cleanenergyministerial.org/Portals/2/pdfs/BNEF_
presentation_CEM4.pdf.
Seel, Joachim, Galen Barbose, and Ryan Wiser. 2012.
Why Are Residential PV Prices in Germany So Much
Lower Than in the United States? Berkeley, CA: Lawrence
Berkeley National Laboratory. http://rael.berkeley.edu/
sites/default/files/lbnl-german-price-presentation-final.
pdf.

27
Annex 1I: Clean Energy
Ministerial InitiativesII
Thirteen wide-ranging initiatives have been launched through the Clean Energy Ministerial that build on Technology
Action Plans that were released by the Major Economies Forum Global Partnership in December 2009. The initiatives’
low-cost, high-impact technical work facilitates international coordination that amplifies each government’s clean
energy deployment efforts. Progress in the initiatives can help nations reduce carbon emissions, improve energy
security, provide energy access, and sustain economic growth.
Energy Efficiency
Appliances
Super-Efficient Equipment and Appliance Deployment (SEAD) initiative promotes
energy-efficient appliances and equipment.
Buildings and Industry
The Global Superior Energy Performance Partnership (GSEP) targets energy
savings in commercial buildings and industry.
Electric Vehicles
The Electric Vehicles Initiative (EVI) works to accelerate the global scale-up of electric
drive vehicles.
Clean Energy Supply
Bioenergy The Bioenergy Working Group focuses on bolstering the deployment of bioenergy.
Carbon Capture
The Carbon Capture, Use, and Storage Action Group creates greater political
momentum to advance the deployment of CCS.
Hydropower
The Sustainable Development of Hydropower initiative promotes the development
of sustainable, cost-effective hydropower.
Solar and Wind
The Multilateral Solar and Wind Working Group works to lower the costs of solar
and wind energy in regions around the world.
Energy Access
Energy Access
The Global Lighting and Energy Access Partnership (Global LEAP) aims to
facilitate access to affordable, clean, and quality-assured off-grid energy devices.
Cross-Cutting
21st Century Power
The 21st Century Power Partnership works to transform the electricity sector through
the integration of smart grids, clean energy, and energy efficiency.
Smart Grid
The International Smart Grid Action Network (ISGAN) works to accelerate the
development and deployment of smarter electricity grids worldwide.
Sustainable Cities
The Global Sustainable Cities Network provides a platform for sustainable city
initiatives throughout the world.
Human Capacity
Clean Energy Policy
The Clean Energy Solutions Center is a first-stop resource for clean energy policy,
best practices, data, analysis tools, and expert assistance.
Women in Clean Energy
The Clean Energy Education & Empowerment (C3E) initiative strives to close the
gender gap and help advance women’s careers and leadership in clean energy.

28
Annex III:Acknowledgments
III
This report was prepared by several contributors, including roundtable coordinators with the U.S. Department of
Energy and roundtable operating agents. The Clean Energy Ministerial Secretariat wishes to thank all of these
individuals and organizations for their contribution and collaboration.
In particular, the Secretariat wishes to thank the International Renewable Energy Agency, the Electrification Coalition,
the Center for American Progress, the National Renewable Energy Laboratory, Bloomberg New Energy Finance, and
the Institute for Industrial Productivity for serving as operating agents for the roundtables.
The Secretariat also wishes to acknowledge the tremendous efforts and contributions of Srinivas Mirmira, Desiree
Pipkins, Kavita Ravi, Graziella Siciliano, Paul Telleen, Christie Ulman, and Matthew Wittenstein with the U.S.
Department of Energy for working tirelessly to conceptualize, coordinate, and organize the roundtables.
Graham Pugh, Director of the Office of International Climate Change Policy and Technology at the U.S. Department
of Energy, provided guidance and direction for the roundtables and for the final report.
Tracey Crowe with the Clean Energy Ministerial Secretariat and the editorial team at Energetics Incorporated edited
the report.
The report was designed by Energetics Incorporated.

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